Reach Your Wealth Goals

Reach Your Wealth Goals

One in two Australians feel they aren’t doing enough to achieve their financial goals. According to recent research by MLC Wealth Sentiment Survey, a lack of financial planning and poor financial confidence are the reasons why.

In the study, 50 per cent of Australian participants said self-doubt is the reason for falling short on wealth goals, while 32 per cent said not earning enough money is the problem. These two factors were nominated by respondents as more significant than being scared of risk or spending more than they earn.

Closely tied to the lagging confidence of Australians is the number of people who do not have a plan to save and invest, with just one in four respondents having a financial plan.

With so few people having a financial plan, perhaps it is not surprising that Australians doubt themselves and don’t believe they have done enough to reach their wealth goals.

The survey also asked Australians to define ‘wealth’. On average, 33 per cent said they defined wealth as income, 29 per cent defined it as lifestyle wealth and 24 per cent said net worth.

The survey responses highlighted the most important aspects of lifestyle wealth as being debt free, having enough money for emergencies, and being able to fund desired lifestyles.

On average, participants estimated they would need approximately $818,000 in savings and investments in order to retire, however, they expect to retire on just $557,000 (excluding home equity).

The good news from another MLC study, the Australia Today report, is that help from financial professionals has an encouraging impact on financial confidence and security.

Australians engaging the help of financial professionals are more than twice as likely to feel ‘very or fairly well prepared’ for retirement than those without a financial professional.

Those surveyed with financial planners or advisers are also 22% less likely to expect to rely on government support to ensure their financial security and are 10% less likely to be relying on an inheritance to ensure financial security.

What Can You Do?

Australia’s superannuation and taxation systems are complex, and as you know, receiving good advice to help you navigate through your finances can make a big difference to your lifestyle.

Just as we have assisted you with your financial journey, we would love the opportunity to be able to assist your friends and family to achieve their financial freedom.

Do you know anyone close to you who may benefit from having a financial plan? We would love the opportunity to talk with them about planning to achieve their wealth goals, so they too can feel better prepared, and able to look forward to and enjoy their retirement.

Just call us, we are always here to help.

Disclaimer:

The articles are of a general nature only and are not to be taken as recommendations as they might be unsuited to your specific circumstances.

The contents herein do not take into account the investment objectives, financial situation or particular needs of any person and should not be used as the basis for making any financial or other decisions.

InterPrac FP directors and advisers may have investments in any of the products discussed or may earn commissions if InterPrac clients invest or utilise services featured.

Your InterPrac FP adviser or other professional advisers should be consulted prior to acting on this information. This disclaimer is intended to exclude any liability for loss as a result of acting on the information or opinions expressed.